VA Motor Vehicle Dealer Board cautions dealers on payments to internet auto sales service ZAG.com
The Virginia Motor Vehicle Dealer Board, meeting this week, has determined that dealers paying fees for successful leads they receive from the internet vehicle referral service ZAG.com, may be in violation of the states prohibition against bird dog fees.
ZAG.com pays dealers on a per transaction basis when the dealer sells a vehicle to a buyer referred by ZAG.com. In return, dealers pay ZAG.com a fee ranging from $295. to $395, which the executive director of the MVDB believes is illegal under Virginias ban against bird dog fees. The MVDB cannot take enforcement action against ZAG.com since it is not a licensed entity in the commonwealth, but the Board can take action against dealers who do business with ZAG.com and pay to ZAG.com when bird dog payments are made.
The MVDB will be issuing an advisory Virginia dealers reminding them that it is illegal in Va., to pay unlicensed individuals or companies based on sales of vehicles and can subject the dealer to enforcement actions.
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